article aims at finding the relationship between the dividend policy and the
Volatility of the share prices. Dividend Yield and Dividend Payout has been
used to measure the dividend policy. Other control variables such as the
Earnings Volatility, Long-Term Debts, Growth in Assets, Firm Size have been
used. The data has been collected from the financial years of 2011-2017.
Multiple regression and correlation test have been used to find the
relationship between the dividend policy and Volatility of the share prices.
The findings showed that the Earnings Volatility, Growth In Assets, Long-Term
Debts are positively correlated with price volatility while Dividend Payout,
Dividend Yieldand Firm Size are negatively correlated with the price
volatility. Prasad. R | Prof. Anuradha. R"Relationship between Dividend
Policy and Volatility of the share prices: Evidence from Indian
Pharmaceutical and IT companies" Published in International Journal of
Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470,
Volume-2 | Issue-2 , February 2018, URL:
Article URL: http://www.ijtsrd.com/management/accounting-and-finance/10734/relationship-between-dividend-policy-and-volatility-of-the-share-prices-evidence-from-indian-pharmaceutical-and-it-companies/prasad-r